Retail and Sales Management Vinod Puri 9820694960; 26314644
Retailing Retailing encompasses the business activities involved in selling goods and services to consumers for their personal, family, or household use. It includes every sale to the final consumer.
Issues in Retailing • How can we best serve our customers while earning a fair profit? • How can we stand out in a highly competitive environment where consumers have too many choices? • How can we grow our business, while retaining a core of loyal customers?
The Philosophy Retailers can best address these questions by fully understanding and applying the basic principles of retailing, as well as the elements in a well-structured, systematic, and focused retail strategy.
An Ideal Candidate for Retailing Career • Be a people person • Be flexible • Be decisive • Have analytical skills • Have stamina
A Typical Channel of Distribution Retailer Manufacturer Wholesaler Final Consumer
Multi-Channel Retailing • A retailer sells to consumers through multiple retail formats • Web sites • Physical stores
Relationship Management Among Retailers and Suppliers • Disagreements may occur: • control over channel • profit allocation • number of competing retailers • product displays • promotional support • payment terms • operating flexibility
Distribution Types • Exclusive: suppliers make agreements with one or few retailers that designate the latter as the only ones in a specified geographic area to carry certain brands or products • Intensive: suppliers sell through as many retailers as possible • Selective: suppliers sell through a moderate number of retailers
Special Characteristics Small Average Sale Impulse Purchase Retailer’s Strategy Popularity of Stores
Retail Strategy • An overall plan for guiding a retail firm • Influences the firm’s business activities • Influences firm’s response to market forces
Six Steps in Strategic Planning 1. Define the type of business 2. Set long-run and short-run objectives 3. Determine the customer market 4. Devise an overall, long-run plan 5. Implement an integrated strategy 6. Evaluate and correct
Growth-oriented objectives Appeal to a prime market Distinctive company image Focus Strong customer service Multiple points of contact Employee relations Innovation Commitment to technology Community involvement Constantly monitoring performance Aspects of Target’s Strategy
The Retail Concept Customer Orientation Retailing Concept Coordinated Effort Retail Strategy Value driven Goal Orientation
Customer Service • Activities undertaken by a retailer in conjunction with the basic goods and services it sells. • Store hours • Parking • Shopper-friendliness • Credit acceptance • Salespeople
A Customer Respect Checklist • Do we trust our customers? • Do we stand behind what we sell? • Is keeping commitments to customers important to our company? • Do we value customer time? • Do we communicate with customers respectfully? • Do we treat all customers with respect? • Do we thank customers for their business? • Do we respect employees?
Relationship Retailing • Seek to establish and maintain long-term bonds with customers, rather than act as if each sales transaction is a completely new encounter • Concentrate on the total retail experience • Monitor satisfaction • Stay in touch with customers
Effective Relationship Retailing • Use a win-win approach • It is harder to get new customers than to keep existing ones happy • Develop a customer database • Ongoing customer contact is improved with information on people’s attributes and shopping behavior
Approaches to the Study of Retailing Institutional Functional Strategic
Retail Management: A Strategic Approach • Building relationships and strategic planning • Retailing institutions • Consumer behavior and information gathering • Elements of retailing strategy • Integrating, analyzing, and improving retail strategy